Mega infrastructure projects were a major driver behind the growth of the non-oil sector
Despite the expected slowdown in the kingdom’s economy, the second half of 2016 was stable for some of the sectors in Bahrain, including property.
With a foreseen 1.7 percent decline in overall growth rate this year, compared to a two percent growth in 2016, a recent property report by Cluttons indicated that the sector had shown high flexibility in terms of rent prices, thus defying the impact of economic repercussions and inflation rates that still exceed expectations.
In the office space sector, rents retained their stable levels in all major markets, largely without noticeable change during the first nine months of 2016. A noticeable stagnation was seen in the retail space sector with expectations of stability in rental prices during the coming few months, analysts said.
In 2016, various reports indicated mixed speculations over the kingdom’s economy in 2017, though they revealed that Bahrain’s non-oil sector recorded a 4.7 percent growth rate in the third quarter of 2016, over a 3.6 percent rate in the second quarter of the same year, as per the statistics issued by Bahrain’s Economic Development Council.
Reports also said mega infrastructure projects undertaken last year in the kingdom were a major driver behind the growth of the non-oil sector including the $ 3 billion 6th production pipeline at Alba, the $800 million power plant project, the $1 billion contract for the modernisation of Bahrain International Airport , and the $355 million gas manufacturing facility at Banagas.
Projects and investment portfolio by the GCC Development Programme also played a major role in pushing forward the growth of the non-oil sector where the value of projects foundations were laid for doubled to $3.1 billion since the end of 2015. Value of projects tendered increased by 20.5 percent to more than $4.3 billion, analysts said.